Bank Of Jiangsu(600919) ZHONGTAI SECURITIES·2024-11-01 03:11Investment Rating - The investment rating for Jiangsu Bank is "Buy" (maintained) [1][2]. Core Views - Jiangsu Bank's performance shows strong sustainability, with a balanced asset distribution and robust asset quality. The bank's core competitiveness is supported by its historical endowment combined with financial technology, a solid public business foundation in manufacturing and infrastructure, and a competitive retail business with scale advantages [1][2]. Summary by Sections Revenue and Profit Growth - Revenue growth has slightly narrowed, with a year-on-year increase of 6.1% in Q3 2024 compared to 7.1% in the first half of 2024. Net profit growth remains stable at 10.1% year-on-year for the first half of 2024 [5][11]. - Cumulative revenue, PPOP, and net profit for Q3 2024 show year-on-year growth of 6.1%, 7.1%, and 10.1% respectively [5][6]. Net Interest Income and Margin - Net interest income decreased by 0.1 percentage points quarter-on-quarter, with the annualized net interest margin declining by 8 basis points to 1.71%. The yield on interest-earning assets fell by 23 basis points to 3.94%, while the cost of interest-bearing liabilities decreased by 10 basis points to 2.17% [8][11]. Asset and Liability Growth and Structure - The asset side remains stable, with public business continuing to grow and retail lending showing signs of recovery in the second half of the year. In Q3 2024, loans increased by 200.8 billion, with public loans up by 208.7 billion and retail loans down by 5.2 billion, although retail loans saw a net increase of 12.8 billion in the third quarter [11][12]. - On the liability side, the proportion of deposits decreased while the proportion of bond issuance increased. In Q3 2024, the changes in the proportions of deposits, bond issuance, and interbank liabilities were -1.8, +3, and -1.2 percentage points respectively [11][12]. Non-Interest Income - Non-interest income increased by 16.9% year-on-year, with other non-interest income showing a marginal upward trend. However, net fee income turned negative with an 11.9% year-on-year decrease [14][15]. Asset Quality - The bank maintains a solid asset quality with a non-performing loan (NPL) ratio of 0.89%, the best level since 2012. The annualized NPL generation rate is 1.21%, with a coverage ratio of 351.03% [16][17].